Which of the Following Statements Regarding Municipal Bonds Is FALSE

question 7

Multiple Choice

Which of the following statements regarding municipal bonds is FALSE?

• A)A single municipal bond issue will often contain a number of different maturity dates.Such issues are often called multi-muni bonds because the bonds are scheduled to mature over a multiple number of years.
• B)Revenue bonds are where the local government pledges specific revenues generated by projects that were initially financed by the bond issue.
• C)Municipal bonds are sometimes also referred to as tax-exempt bonds.
• D)Bonds backed by the full faith and credit of a local government are known as general obligation bonds and are not as secure as bonds backed by the full faith and credit of the federal government.

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Definitions:

Sewer Drains

Infrastructure designed to carry away waste water and storm water from urban and suburban areas to treatment facilities or natural outlets.

Oil Manufacturers

Companies involved in the extraction, processing, and distribution of oil products.

Tangible Attributes

The physical characteristics of a product that can be perceived through the senses, such as size, weight, and texture.

Intangible Attributes

Characteristics of a product or service that cannot be physically touched, but affect consumer perception and value, such as brand reputation or service quality.